Koch Energy Trading (KET), a unit of Wichita, Kan.-based Koch Industries Inc., said Monday that it is increasing its stake in IMD Storage, Transportation & Asset Management Co. (IMDST) to 100% from 50%. This is the second move Koch Industries has made in a week in the gas and power sector (see related story on Finance/Companies page).
IMDST is a Texas limited-liability company formerly owned by Koch Energy Trading and Inventory Management & Distribution Co. Inc.
The purchase will allow Koch to leverage its other capabilities, such as power trading and weather derivatives, into new products and services "that will benefit us and our customers as we fully integrate this asset optimization business in KET," said David Sobotka, president of Houston-based KET.
IMDST manages more than 100 bcf of gas storage and about 1 bcf/d of pipeline capacity. The company's assets include storage in the US Northeast plus interests in the Gulf Coast and Chicago areas.
IMDST will be affiliated with Koch-Entergy LP, the new Houston-based venture between Koch and Houston-based Entergy Corp. IMDST will remain a wholly owned subsidiary of KET, pending board and regulatory agency approvals of the Entergy-Koch joint venture.
